This recent stock market correction was just that...a correction. Nothing to it, business as usual. Easy to hold assuming your AA is in the right ballpark. But what about a full-on crisis?
I'm still 10-15 years away from early retirement so it's naive to think we won't experience another crisis similar to 2008-2009 at some point in the future. I was able to hold (and keep making contributions) through 2008-2009 but I didn't make any aggressive moves like hindsight shows that I should have.
Assuming we have another crisis that cuts the S&P500 in half, what would be your gameplan in that environment? I'm currently at about a 60/40 AA. If the market got cut in half, I feel like it would be smart to make a significant shift towards equities above and beyond my baseline AA. Do you all have a specific gameplan like shift x% from bonds to stocks when the market goes down x%? I'm not talking about standard rebalancing bands. I'm talking about 2 or 3 times in an investment lifetime aggressive moves. Thoughts?
Submitted February 19, 2018 at 10:22PM by RandomGenericUserID http://ift.tt/2odeK1D
